Sick of building maintenance and a depreciating asset ?

Discussion in 'Commercial Property' started by Beano, 26th Apr, 2018.

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  1. Beano

    Beano Well-Known Member

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    Buy just the land
    The building owned by Woolworths
    10 Limestone Drive NSW
    "land appreciates , buildings depreciate!
     

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    Beano, 26th Apr, 2018
    #1
    Perthguy likes this.
  2. geoffw

    geoffw Moderator Staff Member

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    I only see blank pages.

    This Woolworths is just two blocks from the property we've just sold. We bought that place well before the Woolworths was built.
     
    geoffw, 27th Apr, 2018
    #2
  3. ShireBoy

    ShireBoy Well-Known Member

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    ShireBoy, 27th Apr, 2018
    #3
  4. geoffw

    geoffw Moderator Staff Member

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    That must be an old picture. Petrol at $1.17. it was $1.49 there yesterday.
     
    geoffw, 27th Apr, 2018
    #4
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  5. Beano

    Beano Well-Known Member

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    File just loaded ...we will test you on this report tomorrow lol :)
     

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    Beano, 27th Apr, 2018
    #5
    Perthguy and Scott No Mates like this.
  6. Hosko

    Hosko Well-Known Member

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    Is something like this likely to earn around the 10% return or is it sought after therefore a little less?
    Is there a queue to get these sort of deals and you need to be in the know, or is it a matter of being in the right place at the right time?
    Thanks as always for your informative posts Beano
     
    Hosko, 27th Apr, 2018
    #6
  7. Beano

    Beano Well-Known Member

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    It is a auction so no one knows what it will go for.
    Did you read the attached information file?
     
    Beano, 28th Apr, 2018
    #7
  8. Ben_j

    Ben_j Well-Known Member

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    @Beano I’ve just done a search on “ground lease” for sale across a few commercial real estate sites and only found about 3 in Australia under $2m.

    Is this the correct search term to use?
    Are they hard to find?
    Or is it a matter of they’re not always advertised and it needs more investigation?
     
    Ben_j, 28th Apr, 2018
    #8
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  9. Hosko

    Hosko Well-Known Member

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    Yes, all read and digested.
    Do they go to auction the majority of the time?
     
    Hosko, 28th Apr, 2018
    #9
  10. Beano

    Beano Well-Known Member

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    Can I test you on all 200+ pages ? :)
    I have never brought on auction only on priced and tenders
    From observation probably 90pc go to auction 10pc are withdrawn or purchased pre auction
     
    Beano, 29th Apr, 2018
    #10
  11. Beano

    Beano Well-Known Member

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    I would say mostly advertised BUT if the terms of the lease allow for the first right of refusal then it will not reach the market
    Yes "ground lease " "lessor's interest" "freehold" are all terms for the land
    Yes the freeholders do not often sell ...too hard to replace
     
    Beano, 29th Apr, 2018
    #11
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  12. Beano

    Beano Well-Known Member

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    What are the details of three advertised ?
     
    Beano, 29th Apr, 2018
    #12
  13. Ben_j

    Ben_j Well-Known Member

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    Ben_j, 30th Apr, 2018
    #13
  14. Beano

    Beano Well-Known Member

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    Beano, 30th Apr, 2018
    #14
  15. Beano

    Beano Well-Known Member

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    three elements
    1 land
    2 building
    3 business
    Looks like 1 and 2 are being sold
     
    Beano, 30th Apr, 2018
    #15
  16. Ben_j

    Ben_j Well-Known Member

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    Ok yep, I’ve got the idea. So your strategy is to buy 1. only.
     
    Ben_j, 30th Apr, 2018
    #16
  17. Beano

    Beano Well-Known Member

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    After buying 1 and 2 I now buy only 1
    I will let you know in a couple decades which property was the best investment out of my real mixed bag
     
    Beano, 30th Apr, 2018
    #17
  18. Ben_j

    Ben_j Well-Known Member

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    Is there much availability of 1 under $2m?
     
    Ben_j, 30th Apr, 2018
    #18
  19. Beano

    Beano Well-Known Member

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    I brought 29 of 1 under $90k
    Net yield range 6 to 6.5pc net yield on market rentals
    Had more offered but the yield was too low for me 3 to 4pc
     
    Beano, 30th Apr, 2018
    #19
  20. Ben_j

    Ben_j Well-Known Member

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    $90k seems like a bargain! Can you give an example of the types of properties?
    Were these all in NZ or Oz?
    How did you source so many?
     
    Ben_j, 1st May, 2018
    #20
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